Wanda RederChief Strategy Officer, S&C Electric Company

São Paulo Brazil

Electric Utility Crossroads Includes Renewables and Storage

Leadership Conference for Women in EnergySheraton Indianapolis City Centre Hotel

Indianapolis, INJune 2-3, 2015

Leadership Conference for Women in EnergySheraton Indianapolis City Centre Hotel

Indianapolis, INJune 2-3, 2015

S&C Delivers Smart Grid Reality

Grid EdgeStorage

10’s of kWSubstation Batteries

10’s of MW

Source: Graphics adapted from an EPRI Presentation

Distributed Intelligence and

Control

Micro-grids

Solar Integration

Dynamic VARsSingle Phase

Cutout MountedRecloser

Overview

• Market forces and trends

• Renewable outlook

• Using storage to manage chaos

• Modernizing the grid

• Crossroads includes renewables and storage

Flexibility for Energy Changing Mix

Energy mix: 2011 - 2035 Natural gas: 21% to 40% Coal: 49% to 25% Renewables: 4% to 11%

Infrastructure implications: Changes how we make,

move, and use power Must accommodate

renewables, build in flexibility

Source: Black & Veatch Analysis - Energy Market Perspective

US Renewable Generation: 2013 – 2014

Source: Annual Energy Outlook 2015, US Energy Information Administration

Bill

ions

of K

ilow

att-h

ours

Technology Changes Things!

Source: “Utility Marketplace with a Texas Twist” Tim Hein, Oncor, April 2015

Solar PV and Diesel TechnologyPower Cost Trends: 2001-2013

(Source: HOMER Energy )

Source: Advanced Microgrids: Building the Business Case, Navigant, Feb 2015

PV Costs Trends and Market GrowthGlobal Solar Market in excess

of $100 Billion

Last year, Wal-Mart announced a partnership with SolarCity to equip California stores with solar panels and has long said it wants to power its stores using

100% renewable energy technologies.

Wal-Mart

8Source: “Utility Marketplace with a Texas Twist” Tim Hein, Oncor, April 2015

Google Map Snapshot ofIkea in Frisco, Texas

9Source: “Utility Marketplace with a Texas Twist” Tim Hein, Oncor, April 2015

Renewable Generation

• Often inverter based having harmonic contribution

• Intermittent and uncertain generation output

• Interconnection with utility requires power export considerations

• Requires negative load modeling approach

10

Grid Connected Energy Storage

• Renewable smoothing

• Peak shaving

• Scheduled power output

• Commanded power output

• Power factor regulation

• Commanded VARs

11

©2015 S&C Electric Company, Inc. All rights reserved.

2-MW System – Ohio2-MW System – Ohio

1-MW System – West Virginia1-MW System – West Virginia2-MW System –Indiana2-MW System –Indiana

1-MW System – Minnesota1-MW System – Minnesota

2 x 1-MW System – North Carolina2 x 1-MW System – North Carolina

2-MW System – West Virginia2-MW System – West Virginia

1-MW System – Catalina1-MW System – Catalina

1-MW System – Australia1-MW System – Australia

1-MW System – Scotland1-MW System – Canada1-MW System – Canada

4-MW System – California4-MW System – California

2-MW System – Alameda2-MW System – Alameda

1-MW System – New Mexico1-MW System – New Mexico

1-MW System – New Mexico1-MW System – New Mexico

4-MW System – Texas4-MW System – Texas

IslandingRen Integration

MicroGridT&D Deferral

1-MW System – Missouri1-MW System – Missouri

2-MW System – California2-MW System – California

1-MW System – Canada1-MW System – Canada

6-MW System – England6-MW System – England

S&C Electric Energy Storage Use Cases

©2015 S&C Electric Company, Inc. All rights reserved.

Using Storage to Manage Chaos

• Smooth intermittency

• Minimize reverse power flow, keeps voltage in limits

• Store output and release coincidental with local load

• Control ramp rate

• Primary frequency response, load following

Source: SDG&E, June 2014 - Thomas Bialek Batteries smoothing intermittent solar generation

-4-3.5

-3-2.5

-2-1.5

-1-0.5

00.5

1:55 PM 2:24 PM 2:52 PM 3:21 PM

Pow

er(k

W)

PV Output

PV Smoothed by Storage

Old Grid

Modern Grid

©2015 S&C Electric Company, Inc. All rights reserved.

Modern Grid Uses Energy Storage• Storage offers great potential

• Technology is changing! Lithium Ion making great strides.

• Brattle report – Published Nov. 2014. – 3,000 - 5,000 MW of distributed electricity storage is most cost-effective

across ERCOT at $350/kWh storage cost.

– Payback dependent on both regulated investment deferral and merchant/market value of the energy

– Proposes that T&D companies can deploy storage on the distribution system and "auction off" rights to third parties to participate in the wholesale market

• Recognize market forces. Industry at crossroads.

• Energy mix is changing!

• Regulatory shifts are certain

• Technology advancement is accelerating storage and renewables

• Represents an opportunity to remain competitive and manage uncertainty

Crossroads Includes Renewables, Storage

Wanda RederChief Strategy Officer S&C Electric Company

Wanda.reder@sandc.com(773) 381-2318